TSB Review Q1 2017

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CATEGORY

PEOPLE, PRACTICE & PURPOSE QUARTER 1 2017

THE NATIONAL HOUSING TRUST (NHT) A ROOF RIGHT OVER JAMAICANS HEADS

THE FOLIO LINE PROJECT A TUNNEL TO NORWAY'S FUTURE

BANRO BLUEPRINT FOR ETHICAL MINING IN THE DRC

ZALPort JEWEL OF THE IBERIAN PENINSULA

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CATEGORY

A very happy new year to you and welcome to this quarter's edition of The Sustainability Business Review. As we continue to feature companies whose operation work to strike a balance between the bottom line and how businesses contribute towards the overall welfare of the local and wider economies and the communities in which they operate, we hope the 10 editorial features in this issue help you start the year the right way. In this issue our lead stories starts closer to home. Scottish Water, a company leading in H20 Revolution and Severn Trent Water another water infrastructure giant based in Birmingham, England and responsible for water management and supply. It is also responsible for waste water treatment and disposal, in the catchment areas of two of Britain's largest rivers - the Severn and the Trent. Our series on major infrastructure projects across Europe progresses with the Follo Line Project, The project is currently the largest transport project in Norway and includes the country's longest railway tunnel (20 km), Brenner Base Tunnel (BBT) project- the longest underground rail link in the world is a straight, flat railway tunnel between Austria and Italy. And Zal Port an intermodal logistics platform off the Port of Barcelona. A true logistic hub one of a handful of legacy projects associated with the Barcelona Olympics that has fulfilled its mandate to create economic and social development We continue our coverage on the Caribbean with National Housing Trust Jamaica, Dominica Electricity Limited and Yara Trinidad. These organisations are making significant investments, not only in terms of generating additional revenues but also in terms of sustainability and CSR. The Sustainable Business Review specialises in featuring diverse companies from around the globe, so you will also find in this quarter’s publication, Banro and its sustainable initiatives and Shell Appomattox Platform Project. There are many other companies also featured in this exciting edition. Our articles are primarily based on interviews with senior executives. This allows us to get to the very heart of the company’s value system. Their approach and belief in generating incremental revenues and profits alongside environmentally friendly and CSR principles is plainly clear from the interviewees’ enthusiasm , drive and absolute belief in what they are striving to achieve with each of their business portfolios. We hope you enjoy this quarter’s travels around the globe, discovering industry insights, trials and tribulations, success stories, astounding Initiatives and more! See you next quarter! Brain Jackson

TEAM Editorial: Brian Jackson Susette Horspool Michael Minihan

PRODUCTION Karen Hue Jason Olayinka Arantxa Salas Cifuentes Arabella Sansegundo Mulero

RESEARCH

John Mills Joseph Philips

CONTENT QUARTER 1 2017 SPECIAL REPORT:

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ZALPORT

PROFILE:

22 32 46 58 72 80 91 98 110

THE FOLLO LINE PROJECT BRENNER BASE TUNNERL SHELL APPOMATTOX SCOTTISH WATER SEVERN TRENT WATER DOMLEC YARA NHT BANRO

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EVENTS: PDAC 2017 Dates: 05-08 March, 2017 Location: Toronto, Canada, Metro Toronto Convention Centre, 222 Bremner Blvd The Prospectors & Developers Association of Canada (PDAC) International Convention, Trade Show & Investors Exchange is the world’s leading Convention for people, companies and organizations in, or connected with, mineral exploration. In addition to meeting over 900 exhibitors and 22,000 attendees from over 100 countries, you can also attend technical sessions, short courses and networking events. The four-day annual convention held in Toronto, Canada, has grown in size, stature and influence since it began in 1932 and today is the event of choice for the world’s mineral industry

GLOBAL SUMMIT brings together the whole infrastructure ecosystem. If you want

NIGERIA MANUFACTURING EXPO NME 2017

to take the temperature of the entire global community, this is the

Dates: 24 - 26 January, 2017

place to do it.

Location: Lagos, Nigeria The landmark Center Experts in the Industry share their knowledge, expertise and experience - up skill your team to help reduce

Dates: 21 - 22 March 2017 Location: Hilton Hotel, Berlin The Infrastructure Investor Global Summit is the one event that

Join 1000+ attendees, including 250+ institutional investors representing more than $500bn of infrastructure allocations globally and the wider global infrastructure community at the world’s most important infrastructure event. http://events.infrastructureinvestor.com/

costs and ensure a more efficient supply chain. The

free-to-attend

conference

at

the

Multimodal West Africa 2017 aims to create a platform where industry experts can share their knowledge, expertise and experience, Water Corporation Road www.nigeriamanufacturingexpo.com

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GULFOOD 2017 Dates: 26 - 2 MARCH 2017 Location: Dubai World Trade Centre Gulfood, Dubai’s largest food and hospitality event, returns for a new edition, welcoming F&B professionals from around the world. The trade fair promotes trade and commerce across the sectors of beverages, dairy, fats and oils, health, wellness and free-from products, pulses/grains/ cereals, meat and poultry, and world food. A number of competitions will be held under the Gulfood umbrella, including the Salon Culinaire chef competition, Barista Masters championship and the Gulfood Innovation Awards. There will also be a special focus on the halal food market. Over 5,000 exhibitors will participate across 120,000 square metres of exhibition space. Attendance at Gulfood is strictly for trade and business professionals related to the industry. The general public and persons under the age of 21 will not be permitted entry. www.gulfood.com

AIRPORT INFRASTRUCTURES & MRO AVIATION MEETINGS AFRICA Dates: 14-16 Feb 2017 Location: United Nations Conference Centre, Addis Ababa, Ethiopia The Airport Infrastructures & MRO Aviation Meetings Africa, organized by the BCI Aerospace will take place from 14th February to the 16th February 2017 at the United Nations Conference Centre in Addis Ababa, Ethiopia. The conference will cover areas like Airport Infrastructures, Maintenance, Repair & Overhaul, Training, Gathering industry professionals from all over the MRO industry and Airport Infrastructure and many more.

17TH ANNUAL CARIBBEAN ENERGY CONFERENCE Exhibition: January 26-27, 2017 Location: Renaissance Santo Domingo Jaragua Hotel & Casino Santo Domingo Dominican Republic The Platts 17th Annual Caribbean Energy Conference provides an excellent venue to learn what is happening in energy around the Caribbean, and to discuss key opportunities and challenges with industry leaders and colleagues. The conference takes place January 2627, 2017 in Santo Domingo, Dominican Republic, and includes two complimentary opportunities to tour the AES Andres LNG Terminal. http://www.platts.com/caribbean

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ZAL Port is one of a h legacy projects associated Olympics that has fulfilled its ma create economic and social deve The company was created as pa infrastructure deve for the 1992 Olympi staged in B

ZA

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ZALPORT

handful of d with the andate to elopment. art of the elopment ic Games Barcelona.

ALPort: JEWEL

OF THE IBERIAN

PENINSULA

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The

ZAL model It is the first port logistics platform established in Spain and the success of its development model is internationally recognised as best practice. As a result, the use of the term "ZAL" has grown from being a name in itself to becoming a generic name in reference to this type of platform. The company has capitalised on this recognition and accelerated the promotion of the "ZAL brand". As part of the rebranding strategy it underwent a name change as well as a logo redesign which has been welcomed by stakeholders. CILSA - the company that manages the port concession in the Logistics Activity Zone (ZAL Port) in the Port of Barcelona – is a recognised trendsetter in the sector which promotes the concept of a true logistical hub. Due to the importance of the Port of Barcelona for the company and its location, the word "Port" has been added to its brand name allowing the market to easily differentiate it from other port logistic developments in Spain. Alfonso Martínez the General Manager of CILSA spoke to SBR about what made ZAL such a formidable success. He said that the ZAL Port offers land and innovative and sustainable logistic warehouses for rent in an intermodal environment with design and quality finishes. It has AAA warehouses that are not available anywhere else in the territory of Barcelona. Moreover it is located in a prime area very close to an attractive consumer market and is well connected with their overseas markets via sea links, a railway connection and direct interconnection with a network of motorways, it is near the airport etc. Facilities include 24/7 security, maintenance and cleaning services.

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It achieved the

best economic performance in history, registering a total revenue of

â‚Ź41.8 million

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Some

performance highlights:

• In 2015 the procurement of logistical areas in Catalonia increased by 67%, reaching almost 550,000 m² compared to the 330,000 m² in 2014. • It achieved the best economic performance in history, registering a total revenue of €41.8 million, increasing its EBITDA by a 17.1% reaching €21.5 million with a Net Result of 51.4%, reaching €5.9 million. • An average occupancy of 96% in the logistic warehouses throughout 2015 and a 97% occupancy rate at the end of the year • Procurement of 131,000 m², of which 30,000 m² were new contracts and 101,000 m² renewed contracts.

Bold plan to divert the mouth of the Llobregat River The final stretch of the river Llobregat, which was at the time located between the two areas of the ZAL Port (the first phase of Barcelona and its expansion in El Prat de Llobregat), presented a serious problem to its plans for expansion. At the time the Port was undertaking the biggest enlargement in its history and development was hampered by the position of the river which: • Formed a natural boundary south of the Port of Barcelona at that time and therefore became an obstacle to its growth; and • Problems connected with the hydraulic capacity which regularly arose in its final stretch during periods of heavy rain.

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A

s part of its expansion, the Port of Barcelona embarked on a bold plan to divert the mouth of the river to the south to take advantage of the improved hydraulic capacity. With this diversion, the Port of Barcelona was able to plan the future multimodal railway station along the old Llobregat riverbed.

The diversion of a river causes significant effects on the territory which it used to cross and it had to deal with: • The natural drainage systems and the surface and groundwater hydrology in the diverted section as a whole had to be modified; • The effect on all the rainwater drainage systems which poured into this stretch of the river; • The alteration of natural systems linked to this hydrological system; and • The new course of the river would affect a nature reserve located alongside the Prat International Airport.

Saving the endangered 12

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Kentish Plover The Kentish Plover is a small bird which lives and breeds near rivers like the Llobregat in Barcelona and is found in the final stretch of the river Llobregat. The plover’s nesting is often disturbed by people walking on the beach to the extent that it has been put on the


ZALPORT

endangered species list. With the diversion of the river mouth, a plan was formed to capture and divert the fauna of this fragile ecosystem of the delta of the Llobregat. This would involve diverting the river in a way that would show the almost

respect for the environment and would not be considered to be finished until they managed to relocate the Kentish plover to the adjacent nature reserve.S

Sustainable

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logistics

Currently the ZAL Port photovolt of flat coverage with 3 MW of pla

It isn’t difficult to see why ZAL Port was awarded the highest status of energy efficiency and is a recognised leader in environmental best practise.

Recent measures that have be policy during the past year includ lights with LED lighting. This mea savings in addition to considerab

Respect for the environment and social responsibility are core issues when it comes to its planning and management. The energy efficiency of the logistics area is a priority objective for ZAL Port, which has been up and running since 2014 with for example the design of new warehouses with skylights to maximize the use of sunlight and efficient LED lighting and magnetic induction technology.

In the Service Center building replaced with LED lighting and system has been installed; sol building’s windows that filters ligh corrective measures that have m resulted in obtaining the level A the Certificate of Energy Efficienc

It has a purchasing group for electricity to negotiate the best kWh pricing for all the installations in ZAL Port. Relief from the heat of the Mediterranean climate can be found in the interior of the warehouses, thanks to active ventilation systems such as fans or passive systems. As well as this, it promotes advanced fuel savings systems for vehicles and fleets, to cite some examples.

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Construction is underway on parameters of the LEED certifi


ZALPORT

taic coverage measures 60,000 m² ates.

een included in its environmental de the replacing of the areas’ street asure has made substantial energy bly reducing CO₂ emissions.

the light installations have been a state-of-the art air conditioning lar film has been placed on the ht and heat intensity as well as other made great energy savings. This has A (maximum level of recognition) in cy of the building.

two new warehouses under the fication (Leadership in Energy &

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THE SUSTAINABLE BUSINESS REVIEW Environmental Design) that will allow the ZAL Port to have more sustainable and energy efficient buildings. CILSA continues to work with the objective of strengthening its environmental commitment, for this reason in the first quarter of 2016 it obtained the EMAS register (Eco-Management and Audit Scheme), in addition this year it intends and expects to meet the requirements of the United Nations Agreement in CSR (Corporate Social Responsibility)

The history of

ZAL Port

1992:The hosting of the Olympic Games, resulted in a huge economic boost for the city of Barcelona and the entire region of Catalonia. As a result, Barcelona was rated one of the top cities in Europe in 2000, based on a number of factors including the quality of life offered and the ability to attract foreign investment. Barcelona began to position itself as a logistics platform in southern Europe given the steady increase of international traffic as a result of the globalisation of the economy and the concentration of production and distribution centers. As part of its strategic framework, the Port of Barcelona decided to create the ZAL Port (Zona de Actividades LogĂ­sticas Logistical Activities Zone) in 1992, to help position the port as a leader in Southern Europe and the Mediterranean. They set up an entity called CILSA (Centro de Intermodal Logistica S.A. - Intermodal Logistics Centre Ltd.) which would be in charge of the development and management of ZAL Port.

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ZALPORT Spain’s integration into the EU meant the lifting of customs barriers which contributed to the free movement of goods in the European Community and the creation of a single market. Companies started to outsource logistics services to increase customer satisfaction. Having a good logistical network was becoming one of the key factors to ensure success. The advantage that ZAL Port had over competitors wasthat they had good intermodal centers in which different modes of transport were combined: land, sea, rail and air transport, in the best location of Barcelona. 2002: A decade later the first phase of 69 hectares, the ZAL Port (BCN), was established, and culminated with the construction of the Service Centre building, where a large part of the services intended for people and companies established in the ZAL Port are now concentrated. The service was extended to neighbouring industrial estates as it was strategically placed in a free access area, so as to be able to meet the day to day needs of the people who work in this platform and its surrounding areas. This date coincided with the incorporation of a new shareholder, Abertis, which helped with the expansion of the development, with a project of another 143 hectares, in the municipality of El Prat del Llobregat: ZAL Port (Prat).

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ZALPORT

Happy people

add more value 6,000 direct employees work in the ZAL Port. Mr Martínez emphasised that offering services to these people is the core of their strategy because happy employees lead to happy clients and this results in an increase in the contracts signed. ZAL Port provides a nursery school for children from 0 to 3 years of age and develops an educational model based on balancing work and family life. Other staff benefits include facilities such as a fitness room, a multi-purpose indoor cycle room, a physiotherapist’s clinic and fully equipped changing rooms and the provision of subsidised transport.

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Future

Plans Exciting changes are planned as a result of a change in shareowners (CILSA is 63% owned by the Barcelona Port Authority, 32% by MERLIN Properties and 5% by SEPES, Entidad Pública Empresarial de Suelo (Public Enterprise for Land under the Ministry of Development)). MERLIN Properties has replaced Abertis (MERLIN Properties is the first SOCIMI (Sociedad Cotizada Anónima de Inversión en el Mercado Inmobiliario - Real Estate Investment Trust) of the country and a company listed on the Ibex 35, which implies clear confidence in the private capital company for the long term. In less than two years MERLIN Properties will become the top player in logistic real-estate in Spain, which will without a doubt contribute to ZAL Port’s new expansion process and growth in its organization) and also CILSA will be refinancing €76 million of the company's liabilities, which substantially reduces the service's debt for the next 5 years. This will allow it to devote the resources generated by the company into growth. Already two contracts have been signed with the Consorci de la Zona Franca of Barcelona for the 75 (50+25) year lease of almost all the available land in the BZ (the former land where the SEAT car factory was located in the Zona Franca area of Barcelona, which is in turn located on the prime logistic area of the city of Barcelona). This allows ZAL Port to lease and manage 27 new hectares of net land which is known as: ZAL Port - Ciutat (City), and that together with the capacity that we had already at ZAL Port (Prat), will allow us to construct more than 350,000 m² of new logistic premises.

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ZALPORT

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The Follo Line

PROJECT: A tunnel

O

il wealth is very often associated with ostentatious displays of wealth – the purchase of football clubs and other trophy assets, for example. However, there is a different path, as exhibited by Norway. Since its oil find nearly 50 years ago, it has continuously taken a sustainable approach to investing with the longterm well-being of its citizens foremost in its decision making. The Follo Line project is the latest in a long line of these investments. The Follo Line is the largest infrastructure project to date in Norway and the longest railway tunnel in the Nordic countries. When completed in December 2021, it will be the country’s first long twin tube rail tunnel and one of the first of its kind to be completed using boring machines. Now, almost two years after the beginning We recently took the time to look further into the development and what the long-term benefits that it will deliver for Norway’s citizens.

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THE FOLLO LINE PROJECT

l to Norway’s future

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A high-speed, high-spec profile

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THE FOLLO LINE PROJECT

The Follo Line project will add around 64 km of new railway tracks to Norway’s existing railway network. A new double track line from Oslo to the town of Ski, in the district of Follo. This line is being designed to cater for trains with speeds of up to 250 km/h, meaning that the typical journey time between Oslo and Ski will be reduced from its current 22 minutes to around 11 minutes.

even though it passes through the densely trafficked area around Oslo Central Station, the vast majority of the work will pass without disruption to the traffic to and from the station.

Given that much of the railway line passes through Norway’s burgeoning capital city, Oslo, one might expect a good deal of disruption between now and the line’s delivery in 2012. Thankfully, however, the prepatory plans for the project drawn up in 2014/5 were comprehensive enough to ensure that

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Specific

engineering for a specific project

Engineering for a high-speed railway passing through busy city is complex enough in itself but further complication for the Follo Line project comes by virtue of the 20km tunnel, which will pass under the Ekeberg Hill in Oslo. Excavation works – perhaps the most significant part of the engineering challenge – are being performed by means of four hard rock shielded tunnel boring machines (TBM), which will bore approximately 18.5 km of the tunnel and drill and blast techniques will also be utilized for some of the tunnel work.

like the Follo Line, the financial arrangeme carefully considered to maximize value for ta A new contract model was developed for th – this is the first time that Norway has utili (engineering, procurement and construction) for a general contractors, and on Signal co the frame agreement. The EPC is a well re contracting arrangement within the con industry which has now been adapted for the N National Rail Administration.

To provide some more context to the complexity of the task being undertaken, both the Follo Line and the relocated Østfold Line are located relatively closely to existing tunnels, caverns and sensitive installations. As such, particular attention must be paid to how the works affect the surrounding rock formations. In compliance with inter-European safety requirements for long tunnels, every 500 meters must be used as escape routes.

The first of the project’s five EPC contra awarded to Italian firm Condotte (Societa’ Ita Condotte d’Acqua SpA) in February 2015. I application was chosen for a combination of its and technical merits. Condotte already p extensive experience in tunnel works. A sec was awarded to OHL (Obrascón Huarte Lain) tasked with delivering the EPC Ski sectio project. Considerable collaboration has also from the project: the main part of the Follo been contracted out to Agjv, a joint venture the Spanish company Acciona and Italy’s Gh employment that all companies generate in area will also have the positive side-effect of young Norwegian engineers.

Partnership and a new form of contract for Norway As mentioned at the outset of this article, Norway has always invested its oil wealth with the future prosperity of its citizens in mind. This means that even with a project

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THE FOLLO LINE PROJECT

ents were axpayers. he project ized EPC contracts ntract for ecognized nstruction Norwegian

acts was aliana per Its tender s financial possesses cond EPC of Spain, on of the o sprung Line has betwee n hella. The the Oslo upskilling

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THE SUSTAINABLE BUSINESS REVIEW What about polluted soils?

What about increasing emissions?

What about the rising sea level?

What about disappearing resources?

DEME N.V. Haven 1025, Scheldedijk 30 B-2070 Zwijndrecht, Belgium T +32 3 250 52 11 F +32 3 250 56 50 info.deme@deme-group.com www.deme-group.com

DEME has a leading position in a number of highly specialized and complex hydraulic disciplines. In the next decades, the world will be facing major challenges such as the effects of climate change and scarcity of resources. Through innovative thinking DEME is offering sustainable solutions in response to these future needs in various fields such as soil and sediment remediation, water treatment, coastal protection, development of green and blue energy, offshore dredging of gravel and sand, deep sea harvesting of minerals and creation of land in densely populated regions, ports and industries.


THE FOLLO LINE PROJECT

A Sustainable solution The Follo Line project will be a timely arrival to Norway’s railway network. The Østfold Line, which will be complementary to the Follo Line in serving Oslo’s commuter belt, has reached its capacity limit. In addition, the region served by the Follo Line is expected to see population growth of over 30% in the next ten years. As such, the line is a good example of sustainably planned infrastructure to cater for the realities of population growth. Norway recently became the world’s first country to ban fuel powered cars, with 2025 being the date set to reach this target. The Follo Line must therefore offer an environmentally-friendly alternative and it promises to deliver on this requirement. During the construction phase, it will minimal impact on people, nature and the environment. Groundwater and Groundwater and properties that might be affected are being closely monitored.

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OHL Group. Follo Line project. EPC Ski contract OHL is recognized as a major company within infrastructure construction and concessions with world-wide activity based on a broad range of projects. The company tracks its history back to 1911, and is now running projects in 30 countries across five continents. OHL is a world leader in hospital and railway construction.

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Oslo’s built environment is also a concern – the Follo Line passes through some of Norway’s most significant cultural areas, including the Medieval Park, a site of great archaeological and historical significance. The Directorate for Cultural Heritage in Norway, Oslo Municipality and the Norwegian National Rail Administration have reached a joint solution for conservation measures regarding both the introduction of the new Follo Line and the new tracks for the Østfold Line through an area known as ‘Klypen,’ providing an opportunity to establish a park area almost twice the current size. In summary, the Follo Line project will be impressive in more than one respect. In an age where public projects are often derided for being delivered significantly over-budget, outside the projected timeframe and even with lasting environmental side-effects, there’s reason to believe that the Follo Line Project – with an estimated life of over 100 years – will have a lasting positive legacy on Norway’s transport infrastructure and its environment.

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Brenner Base T

The longest railway tunnel Construction is currently underway on the Brenner Base Tunnel (BBT), more than half a kilometre below the Brenner Pass in the Alps. When completed, it will be the world’s longest underground railway connection, spanning 64 km from Fortezza in Italy to Innsbruck/ Tulfes in Austria.

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BRENNER BASE TUNNEL

Tunnel:

l in the world

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T

he BBT is part of the broader ScandinavianMediterranean Corridor which will unite Verona with Munich. It is one of nine core corridor networks that have been identified by the EU for funding, based on the strategic part that it plays in the TransEuropean Transport Network (TEN-T). Research shows that about 40% of transalpine traffic passes through the Brenner Pass. Since Roman times, the Pass has provided a link between the main areas of Western, Central and Mediterranean Europe. The Brenner railway which was built in 1867 has the capacity to handle 260 trains per day. It traverses steep up and downhill slopes. The base tunnel is being built on a virtually horizontal line and will have the capacity to handle 400 trains per day, 80% of which is expected to be freight trains. The tunnel will reduce the total rail distance between Fortezza and Innsbruck by about 20 km, reducing transit time from 80 to 20 minutes on the high speed train.

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BRENNER BASE TUNNEL

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Promotion

A State Treaty was sig for the construction 2004. The tunnel w mobility in the region

1. Removing the in impede trade

2. Fostering growth, coordinated plann

3. Promoting a faste friendly transpor across Europe.

The area in which experiences environm by the high levels of emissions and noise negative effect on the and presents as a ma area. Despite high lev only one third is bein completed, freight traf shifting from trucks o significant environmen

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BRENNER BASE TUNNEL

of intermodality

gned between Austria and Italy of the BBT on the 30th April will increase connectivity and by:

nfrastructure bottlenecks that

, cross-border cooperation and ning

er, efficient and environmentally rt for passengers and freight

the Brenner Pass is located mental degradation occasioned f traffic which generates toxic e pollution. This has had a e quality of life of the inhabitants ajor deterrent for tourism in the vels of freight transport passing, ng moved by rail. When BBT is ffic will be rerouted underground onto trains. This will represent a ntal gain for the town.

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BBT SE BBT SE is a ‘special vehicle’ European public limited company which has been set up for the planning and construction of the BBT. Ownership of the tunnel vests in Austria and Italy who are equal shareholders in BBT SE. Austrian holding company OBB (Österreichische Bundesbahnen Infrastruktur AG) and the Italian counterpart TFB (Tunnel Ferroviario del Brennero Holding AG) both hold 50% of the company’s shares. The EU co- finances the BBT for up to 40%. Progress of the construction and the usage of finance is closely monitored by the EU and this will influence whether or not they continue to provide grant funding to the project. The balance of the

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BRENNER BASE TUNNEL

cost (60%) is then split equally between Italy and Austria. The expected cost of the project is â‚Ź 8.6 billion. The BBT SE is governed by a Supervisory Board of 12 members, 6 named by the Austrian and 6 by the Italian partner in BBT SE. A dual management system whereby the company is managed Raffaele Zurlo the Italian CEO and Konrad Bergmeister the Austrian CEO.

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High capacity rail link

tunnel and main tunnel

Some 11.1 million cubic metres of rock will be carved out of the Alps by the time the project is completed. The project involves the construction of two single track tunnels with connecting side tunnels at intervals of 333m and an exploratory tunnel built below the two main tunnels. It will be used to assess geological risks though pre-construction rock mass prospection.

There are four construction sites which are currently in operation:

Both conventional blasting and mechanised excavation methods will be used on the project, based on the conditions of the rock mass and the length of the stretches to be excavated.

Project Timelines 1999-2003 Phase I:preliminary project and prospection 2003- 2010 Phase II: final project and environmental impact assessment 2007- 2018 Phase II (a): exploratory section 2011- 2025 Phase III: exploratory 40

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2026- Tunnel will be operational

Tulfes-Pfons The biggest award made of the four is for the Tulfes – Pfons construction


BRENNER BASE TUNNEL lot amounting to 380 million Euro and awarded to the Strabag/SaliniImpregilo bidding consortium 2014. Excavation works on the 38km tunnel began in September 2014 and is due to be completed in 2019. The work on the Connecting tunnels between the Tunnel and Innsbruck bypass has commenced in 2015

i)Wolf Excavation work for Wolf began in 2013 and is expected to be completed at the end of 2017. The project is worth 104 million Euro and was awarded to the Swietelsky/Swietelsky Tunnelbau bidding consortium in 2013. Work has been completed on the tunnels and rerouting the Padaster brook.


THE SUSTAINABLE BUSINESS REVIEW They are currently busy with the installation of the concrete track bed and 1.2 km of exploratory tunnel to be excavated, a junction chamber and connecting tunnels.

ii) Periadriatic Line This section crosses the large fault zone known as the Periadriatic seam which is a major tectonic discontinuity in the Alps. The construction lot was awarded to the Strabag/Salini-Impregilo bidding consortium in 2011 and is worth 53 million Euro. Since October 2011, 3.7 km of the main tunnels and 1.5km of the exploratory tunnels have been excavated. The stretch near the Periadriatic seam was excavated using blasting and was accomplished without any problems. The work is expected to be completed this year.

iii) Isarco River underpass The construction work for the underpass was awarded to Salini Impregilo in consortium Strabag, and is worth 301 million Euro. The Isarco River underpass is located just before entering the railway station at Fortezza and is regarded 42

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as extremely complex from a technical perspective. Both the main tunnels as well as the interconnecting tunnels will pass under the Isarco River. The project started in 2014 and will cover civil works for the two main tunnels


BRENNER BASE TUNNEL (4.3 km) and the two interconnecting tunnels (2.3km) and will be completed in 2022. The project links the BBT with the existing Brenner line and the

railway station in Fortezza. Prior to excavation of the main tunnel tubes, preparatory works needs to be done which involves the re-routing of state road SS12, the construction of two bridges, one over the Isarco river and one over the Rio Bianco brook, a new railway underpass and the building of an access road to the A22 highway with a loading and unloading area. This will bring welcome relief to the surrounding towns as freight transport will be routed from the town to the highway. In this area, the tunnel is designed to run beneath the surface of the river and through groundwater requiring the use of the complex excavation processes of ground freezing and jet grouting. Ground freezing was used to stabilise soil, so it will not collapse near the excavations. Liquid nitrogen was used in this project to freeze the ground, making it as hard as concrete.

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THE SUSTAINABLE BUSINESS REVIEW Jet grouting is suitable for soft marine clay found on the riverbed. It uses a high kinetic energy jet of fluid which loosens the ground and then this is mixed with a thin slurry producing a soil-cement material.

Tunnel tourism

wall charts, models and videos for young visitors and experts. They show the planned tunnel route as well as provide information on the geological makeup of the rock mass and the construction work. Construction site tours are a popular attraction.

Improved road safety A significant infrastructure project like envisaged by modal shift the BBT always attracts tunnel tourist. They cater for tunnel tourist through the two information centres located at Steinach and Fortezza which have been set up with over 1000 m2 of exhibition space, fully equipped with

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It is expected that the modal shift from road to rail envisaged by the project will realise an improvement of transport safety standards. Research shows that when compared to other modes of transport, high speed rail


BRENNER BASE TUNNEL transport experiences the lowest incidence of accidents, injuries and death. The BBT design fulfils all safety standards of railway transport with design features of two separate tunnels which are connected to each other at intervals of more than 300 metres and the additional feature of intermediate stations which allow for evacuation to the surface fulfils all current safety standards of railway transport.

Monitoring the environmental impact of the construction All the environmental aspects that

could be negatively impacted by the construction of the tunnel are monitored by a third party. The monitoring commenced prior to the implementation of the project and will continue throughout the lifecycle of the project as well as after the project has ended. Any environmental issues are dealt with promptly through corrective measure. Verification of the efficiency of any mitigation strategies takes place as well as verification of general compliance with the content and any provisions or recommendations formulated in the environmental compatibility decree.

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Shell Ap

The Deep

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SHELL APPOMATTOX

ppomattox:

p-Water Project

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T

here was a time when drilling for gas and oil was restricted to certain terrains. But rising energy costs, combined with advances in drilling technology have meant that oil and gas exploration has ever more ambitious frontiers. Shell Appomattox is one such ambitious project – a Deepwater development project based in the Gulf of Mexico, approximately 130 kilometres from the state of Louisiana. The Appomattox project began in July 2015, becoming Shell’s eighth floating platform in the Gulf. Moreover, when construction and installation have concluded, it will be the largest of all the floating platforms in the region. On completion in 2020, the project (which includes both the Appomattox and Vicksburg fields) will have an average peak production of approximately 175,000 barrels of oil per equivalent per day. That statistic is impressive in itself, but a project of this scale inevitably comes with a wealth of similarly aweinspiring numbers. For example, the two fields in the Appomattox project are together thought to hold an estimated 650 million barrels of oil equivalent. They were formed about 150 million years ago during the Jurassic period. Both are located more than 2 kilometres beneath the sea surface, giving some idea of the kind of technical expertise required to reach the fuel below. Gone are the days when the oil industry dominated the world economy. Although the Dutch-English Shell is still a global giant, the new reality in energy is that even oil giants need to be more selective about where they invest. Appomattox fit the stringent criteria. Marvin Odum, Shell’s US Chief and head of its Unconventional Resources Unit, said of the project: “the only type of projects that are going to get funding is this type of project. You really only want to be in the best stuff because it’s the best stuff that will truly be competitive.”

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SHELL APPOMATTOX

in M it p g w s

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Sustainability

Shell needs no reminding of its responsibility to sustainability, not just at Appomattox but around the world. It has established a dedicated sustainability unit, which is one of the world’s largest in terms of budget and people employed. The company’s sustainability is integrated across all of its departments on three levels: i) running a safe, efficient, responsible and profitable business, ii) sharing wider benefits in the areas that they operate, and iii) helping to shape a more sustainable energy future. The statistics surrounding the company’s sustainability give some insight into the scale of the operations. In 2015, for example, $122 million was spent on voluntary investment worldwide. Of this, around $93 million was spent on local programmes for community development, disaster relief, education, health and biodiversity; the remainder was spent on the company’s three global strategic themes of enterprise development, road safety and energy access. The company estimates that of the $122 million, about a third was spent in countries which are part of the UNHDP Human Development Index (meaning that they have per capita GDP of less than $15,000 per year). Shell also prioritizes buying goods and services from local suppliers, many of whom come from those same UNHDP-listed countries. In certain cases, they help local businesses with skills development to reach international standards.

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Partners and Suppliers In 2015, Shell spent more than $56.3 billion on goods and services worldwide. Its commitment to sourcing locally means that where possible, it spends in under-developed regions. Around $5.9 billion was spent on goods and services supplied by local companies in UNHDP countries

In the case of Appomattox, in addition to being able to draw on its junior partner in the project, Nexen Petroleum Offshore (who hold 21% of the project’s interests), Shell also worked with Delmar, the world leader in offshore mooring and subsea services. Delmar performed the mooring design engineering services for the floating platform, which included global mooring analysis verification. FMC Technologies is a global market leader in subsea systems and a leading provider of technologies and services to the oil and gas industry. Their experience in complex projects like Appomattox was one of the key reasons their expertise was sought. Their scope of work on the project thus far has included: technology development subsea manifolds, PLET components, jumpers, development of topside controls and the project’s control system, and its subsea distribution system. Other

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contractors include Lankhorst Ropes, who supplied the mooring lines for the Appomattox development and Williams Partners who have provided Deepwater gas gather services to the Appomattox development. Ultimately, all of Shell’s partners and suppliers need to meet key sustainability criteria, including industry-leading working conditions. It conducts ongoing assessments of its suppliers and partners across the world. In 2015, this meant 10 assessments of suppliers in Africa and the Middle East, 126 in the Americas, 129 in the Asia-Pacific Region and 119 in Europe. All the companies must meet the Shell Supplier Principles, which cover areas such as human rights, labour practices and business integrity.


SHELL APPOMATTOX

Lankhorst Ropes develops and delivers world record breaking products to the offshore oil & gas industry. Applications range from Deepwater Mooring to Deepwater deployment. Utilising our proven rope technology we maintain our position as global leaders in the industry. For more information contact deepwatermooring@lankhorstropes.com

www.lankhorstropes.com

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SHELL APPOMATTOX

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2020 and

BEYOND

Once in operation, it is estimated that the Appomattox project will run for at least 20 years. In that time, there is little doubt that the landscape for US energy will

change considerably. The Paris COP 21 agreement will create more of an emphasis on renewable sources of energy. Nonetheless, the advent of new sources of oil and gas like that at Appomattox provide the US with a flexibility and domestic energy security that it has lacked in the past. At a time when the world increasingly – and belatedly – moves towards sustainability, having a company like Shell leading the oil and gas industry at least assures that the industry is being led by a company with a firm commitment to safety, local communities and the environment. 56

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SHELL APPOMATTOX

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SCOTTISH

WATER

Leading Scotland’s

H2O evolution

I

n the build up to Scotland’s Independence Referendum in 2014, one thing that the proindependence side were keen to emphasize was the strength of Scotland’s institutions. These institutions, they argued, would allow Scotland to thrive outside of a Union. One such institution is Scottish Water. Scottish Water is a statutory corporation (100% owned by the Scottish Government) which was founded in 2002 by a merger of the East of Scotland Water Authority, the West of Scotland Water Authority and the North of Scotland Water Authority under the Water Industry (Scotland) Act of 2002.

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SCOTTISH WATER

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THE SUSTAINABLE BUSINESS REVIEW The company provides vital water and waste water services to around 2.5 million Scottish households and over 150,000 businesses across the country. Among other important tasks, this involves removing close to 1 billion litres of waste water from the system on a daily basis, which it treats before returning it to the environment. In 2015/16, the vast majority (73%) of Scottish Water’s £1.12 billion turnover came from households, with the remaining income coming from wholesale (24%) and other segments (3%). With a surplus of £84.8 million this year alone, the company is able to continuously reinvest and improve the water network, maintaining the company’s outstanding quality of service.

Performance

Environment What becomes clear when reading the Annual Report of Scottish Water is the sheer importance that it attaches to water in every regard. Although this may come across as an obvious statement, it is the extent to which it is true which is so impressive. For example, in 2015, the company carried out more than 311,000 quality checks on Scotland’s water – more than 850 checks a day. In the same year, reported leakages were reduced by over 44 million litres of water. Since its foundation in 2002, the company has invested over £1 billion in environmental quality measures, and intends to invest a further £340 million in the coming five years. It’s a significant investment which should bring the company’s infrastructure to an unprecedented

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SCOTTISH WATER

level, improving the services offered for customers. As company CEO Douglas Millican says: “Scottish Water is investing £340 million in this regulatory period (2015-21) to improve drinking water quality. We want to ensure that all our customers enjoy the look and taste of their tap water. We also want to build resilience and better reliability into our service.”

Stellar CSR Performance Monopolies are sometimes perceived as being bad for society, but as we’ve seen in the past, as long as a company has good governance, there’s every reason to believe that a monopoly can be of greater benefit to society than the sum of its parts. Scottish Water’s status as a statutory company means that this very much the case, with Scotland’s people reaping the rewards of the company’s strength. In 2015, Scottish Water was named as the Best Large Employer in Scotland at the Business Insider awards, a testament to the satisfaction of all of its 3,800 employees based in Scotland, Australia, Qatar and Canada. These employees benefit from an employee package which the company is always looking to improve, and recently included the GREAT scheme, a leadership program for employees which helped them develop their leadership and management skills.

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CATEGORY

Outside of the company’s internal structures, Scottish Water also looks to engage the community at large. Its H2O Program works with football clubs and the schools in their areas (number over 1,000 in total) to educate and inform children about the importance of water and its conservation. The company has also teamed up with Triathlon Scotland to inform everyone about the importance of water safety.

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CATEGORY

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SCOTTISH WATER Elsewhere, the company’s volunteering program goes from strength to strength. Since launching in 2011, more than 3,000 employees have devoted in excess of 20,000 hours to worthy causes. The company gives each employee 2 paid days a year for voluntary works focused on education, the environment and local communities. In 2015, it introduced skills-based volunteering, whereby employees are encouraged to leverage their commercial skills to benefit good causes. Finally, Scottish Water is also the main

contributor to WaterAid Scotland – its “charity of choice.” WaterAid Scotland works with some of the poorest communities in Africa, Asia and the Pacific Region to deliver clean water and toilets, promote good hygiene and campaign for change. The importance of these efforts cannot be understated at a time when more children in the world die from diarrhea brought on by dirty water than any other cause.

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Partners and

Contracts Although the management of a country’s water infrastructure creates conditions ideal for a natural monopoly, Scottish Water can draw on the resources of several partners to generate greater efficiencies of scale. On the £3.5bn rural framework plan, it signed contracts with 58 separate companies to deliver the project on time and under budget. Each and every one of these companies was a Scottish SME, in turn generating employment in the country. As Geoff Aitkenhead of Scottish Water explained: "The vast majority of these small- to medium-sized firms have bases or locations in and around communities. This will provide us with vital local knowledge with skills honed and retained in the community.”

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Branches throughout the UK

It’s not just SMEs which help Scottish Water in successfully delivering its mandate, either. Larger firms like Morrisson Construction, Fastflow Pipeline Services Ltd, Dustacco Engineering, Id Systems UK Ltd and Coffey Construction Ltd typically help Scottish Water on a range of technical, engineering and maintenance projects. For example, of these firms, Morrison Construction, Coffey Construction and Fastflow Pipeline Services Ltd were involved in the quality and standards IV (Q&SIV) programme, upgrading the drinking water network assets, for the regulatory period 2015-2021 in the centre and North East of Scotland. Other contractors play a part too as new project arise.

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SCOTTISH WATER

A Sustainable

Future

Few companies could claim to have made the progress that Scottish Water has in less than fifteen years. However, rising sea levels and the reality of climate change will continue to force the company to change. It’s a journey that the company is well-positioned to make. As CEO Douglas Millican states: “Our success depends totally on knowing what matters to our customers…It is good news that water quality is at its highest level but we will continue to look at how we can improve our service even further and ensure every one of our customers enjoys the highest quality drinking water available in Scotland.” Whether inside or outside the United Kingdom, Scotland’s people can be assured of at least one thing: their water is in good hands.

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SEVERN TRENT WATER

Severn Trent Water: Fit to bear the name of England’s great rivers

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lthough the Thames is England’s bestknown river because of its assocation with the nation’s capital, the Severn is the longest of England’s waterways at 354 kilometres long. Together with the Trent, England’s fourth longest river, they pass

As of 2016, Severn Trent provides high quality water and sewerage services to over 4.3 million households and businesses. Despite reporting an impressive net income of £120 million in 2015, the company’s bills for water and sewage combined are the lowest on average in England and Wales. Likewise, Severn Trent has one of the lowest reported per capita consumption rates in the UK. The company introduces a new strategic plan, every five years. The latest such plan was introduced in 2015 and will run until 2020. Its goals including building on its current

through the west of England and parts of Wales and give their name to the area’s largest private water company, Severn Trent. Severn Trent was founded in 1974 when various small water authorities were brought together to create a regional water authority for the West of England and part of Wales. As one of just ten such newly-formed authorities in the country, Severn Trent automatically gained responsibility for approximately 8 million people. In the 1980s, under legislation developed by the UK government of the time, Severn Trent was privatized. This was followed shortly afterwards by a listing on the London Stock Market, the FTSE. Through a series of bolton acquisitions, the firm that 8 million British people turn to every day for their water began to emerge.

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SEVERN TRENT WATER performance, to deliver better value and better service, but perhaps most importantly, delivering for a healthier environment, including fewer pollution incidents and a 6% reduction in their carbon footprint.

A healtheir environment

Severn Trent is committed to ensuring a sustinable future for water and the environment. In 2015, it published: Charting a Sustinable Course, a document which shines a light on

the main policy issues facing the water sector and promote a constructive debate about its direction for the future. In particular, the document focused on Ofwat (the UK Water Regulator) and their developing the role of sludge trading and water trading. Severent Trent already self-generates energy equivalent to 33% of its total energy requirements and as such, is one of the leaders in its field. In 2015, it started a Proactive Asset Management programme which is focused on investing at the right time and cost to maintain and enhance the long term health of the company’s assets. As a key stakeholder in the region where it operates, the environment is a key non-proprietary asset for the firm. In 2015, it invested £91 million towards its targest on pollution, environmental compliance, biodiversity and sustainable sewerage treatment. This investment formed a part of a larger £250 million programme which seeks to ensure that the company’s assets are not preventing compliance with the government’s Water Framework Directive. The investments reflect the company’s stellar performance on environmental indicators. The UK Environmental Agency has assessed its evironmental performance at 4*, which is the second time in three years that the company has increased its efforts in preventing pollution. In addition, the score for Asset Stewardship Environmental Compliance was 97.51%.

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Partners

at the heart of England Severn Trent’s location in Birmingham, England’s second largest city, and just one and a half hours from London, gives it access to a network of partners and suppliers that would be the envy of any firm of its kind. Chief among these is Atkins, one of the world's most respected design, engineering and project management consultancies and employing some 18,000 people across the globe. Elsewhere, the company can call on Main Electrical, who are continuously working with Severn Trent to reduce its energy burden, and Morrison’s Utility Services, who won the contract to supply the company with repair and maintenance services in 2013. Morrisson’s excellent provision of services outlined in that same contract led to a renewal in 2016 for a further two years at £25 million a year. Last, but certainly not least, are JN Bentley, who have provided Severn Trent with construction and civil engineering services for several years and have played no small part in helping the firm reach the indicators outlined in the previous section.reputation can only improve by being associated with a world class water company like Severn

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The future

As part of its latest 5-year plan, it aims to self-generate energy equivalent to 50% of what it uses by 2020. Its 16MW capacity of solar power on 30 different sites across the UK will help it in this endeavour, as will continuous education of its 8-million strong customer base on sustainable water usage. Above all, the company’s focus will continue on customers, people, process and finance. These four areas are the pillars of the company’s operations and it cannot function without always looking to improve on all four. While the Thames River is better known outside of the UK, the lesser known Severn and Trent rivers’ reputation can only improve by being associated with a world class water company like Severn Trent.

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DOMINICA ELECTRICTY COMPANY LIMITED

DOMLEC:

Bringing energy to the nature isle

The small island of Dominica in the Eastern Caribbean is sometimes referred to as “the nature isle of the Caribbean” thanks to its awe-inspiring natural beauty. As a relatively young island, it is still being formed by geothermal-volcanic activity, which points to the island’s incredible potential in renewable energy. We recently spoke to Dave Stamp, Generation Manager (Acting General Manager at the time of the interview) at Dominica Electricty Company Limited (Domlec) about how the company sees the island’s energy situation evolving.

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omlec began life in 1949, when it was established by the Colonial Development Corporation (giving some clue into the island’s long colonial past). In 1976, the government of the day purchased 49% of the company’s shares, before buying the remaining shares in 1987. Ten years later, in 1997, the Commonwealth Development Corporation (CDC) purchased a majority shareholding (approximately 73%). After changing hands a couple more times, these shares were then sold to the Canadian Emera Corporation - the current majority shareholder – in 2013.

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Shortly before the Emera takeov Mr. Stamp joined the firm. He joins a time when the company has just ab completed one journey - the electrificat of the island (over 95% of the island h access) and now seems set to start anot – the movement of the island towards us 100% renewable energy sources. As Stamp tells us: “The current energy mix the firm, in terms of production, is ab 30% hydro and 70% diesel generati The generation capacity of the firm 27MW, of which about 6MW is hydro a the reminder being diesel.”


DOMINICA ELECTRICTY COMPANY LIMITED

ver, at a bout tion has ther sing Mr. x at bout ion. m is and

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DOMLEC’S ENERGY PEROGATIVE:

A move towards sustainability

Dominica is the most sparsely populated island in the Eastern Caribbean, which creates obvious challenges for a company like Domlec. However, the company manages to meet this demand, in addition to having some energy supply in reserve to cater, for example, for the island’s unpredictable hurriane season. Mr.

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www.rimcocat.com

Stamp explains: “We operate on an N-2 prinicpal, where we have a firm capacity which we’ve agreed with our regulators. This means that if 2 of our largest generators are in maintenance, we’re still able to meet our obligations.”


DOMINICA ELECTRICTY COMPANY LIMITED

While the island’s topography also creates further challenges for infrastructure development, it also brings opportunities for a firm like Domlec. Mr. Stamp tells us: “Dominica’s geothermal potential is extremely high. Most estimates that I’ve seen show that this island has the highest geothermal potential of all the islands in the Eastern Caribbean. The size we’re talking about is anywhere between 500 and 1,000 GW. Wind is another potential avenue – particularly on the island’s leeward eastern side. However, the topography

means that the construction, installation and access to these high wind areas prohibitively expensive for now: Dominica’s GDP per capita is less than $15,000 per year. That said, confident economic growth on the island means that the wind option becomes more possible with every passing year. In short, no sustainable solution is ruled out entirely: “We believe fossil fuels are completely unsustainable for the island, so we’re looking to move towards completely renewable energy by 2025.” Other avenues being looked at by Quarter 1 2017 - The Sustainable Business Review

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the firm are even more adventurous. Visitors to the island will be pleasantly surprised by the number of LED lights and energy-efficient devices they find being used in everyday life on the island. Plans are also afoot for the importation of hybrid and fully electric cars. Most of this has come about as part of Domlec’s initiative. Mr. Stamp says: “We are currently championing electric cars on the island. We’re putting the marketing and promotion 86

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side into play. We’re introducing a policy to make all cars in DOMLEC either electric or hybrid. There is a challenge in that not all vehicles come in electric or hybrid forms but we’ll do it whereever possible.” “Also, we’re promoting several energy-efficient devices. We’re going out there with the government and encouraging people to use LED devices and changing street lights to LED. There are a number of inititiaves


DOMINICA ELECTRICTY COMPANY LIMITED

like this that we’re chapioning across the island.”

RESOURCES AND SUPPLIERS With less than 100,000 people on the island, one might assume that HR posed considerable difficulty, but not according to Stamp: “Generally speaking, we can provide for human resources from what we have in Dominica. We employ about 200

staff across all our operations. We’re a fully integrated operation, so we have transmission, distribution and customer service. So we do everything from generation right through to billing and so on.” Currently, well over 90% of the staff are Dominican and siince we became part of the ECI (Emera Caribbean Inc) group (a Canadian -Caribbean organization), it has

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begun co the organ which ha The lack airport fo respect t chain ma the island part of the managem

Domlec in place West Ind – in both requireme suppliers technical engines), maintena and Brid provides

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ollaborating with other affiliates of nization, including sharing resources, as been a very productive strategy. of a large port facility or international or example has been an issue with to facster and more efficient supply anagement until now, but once which d is addressing better thanks to being e ECI I and improving its supply chain ment.

has supply contract arrangements with local providers like RUBIS dies and Petro Caribe Energy Union h cases to supply the island’s diesel ents. In more technical areas, its s include RIMCO (spares parts and l assistance for the island’s CAT , Man B&W Diesel (who provide ance for the island’s MAN engines) dgeWell Resources, a US firm that it with poles.

DOMINICA ELECTRICTY COMPANY LIMITED

THE JOURNEY TO 2025 The fact that Dominica and Domlec are so determined to reach 100% clean energy inside 10 years is an example to many larger and wealthier countries, who instead plan for incremental changes year on year. Domlec acquired two operating licenses for the country’s energy plants just recently and both extend for 25 years. Mr. Stamp says: “We’re in ongoing discussions with the government to see how the geothermal plant can be developed, integrated into the existing grid, and the management of the operations. . It would also give us an opportunity to meet some of our mandates, where we need to substantially increase our renewable portfolio/mix ” Fifty years after the old energy plants run by British colonialists on the island closed down, their remains can still be seen. They point to the island’s complicated past and dependence on dirty energy. Now, the signs of a confident, sustainable future - electric cars, geothermal energy, LED street lights and smart grids – are everywhere. Thanks to Domlec, Dominica will generate energy while remaining the nature isle of the Caribbean.

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YARA TRINIDAD

The

CARIBBEAN'S NORWEGIAN connection

Mineral fertilizer is one of the world’s great underappreciated innovations. In 1905, a group of Norwegian industrialists produced the world’s first nitrogen fertilizer in Notodeen, Norway. The world of agriculture took a giant leap forward. At a time when famine was ravaging Europe, the introduction of mineral fertilizer – with its capacity to dramatically increase farmers’ crop yields – potentially saved millions from hunger and improved the lives of many millions more in the century after. Quarter 1 2017 - The Sustainable Business Review

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From Norway to Trinidad Similarities between Norway, a country located in Northern Europe with harsh freezing winters, and Trinidad and Tobago, a sun-soaked country of two islands located in the Caribbean, perhaps aren’t immediately obvious. However, both are small, forwardlooking nations which have punched above their weight for a long time. In addition, both countries have sought to develop their economies through a combination of innovation 92

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and exports. In this regard, the two have a large set of common ground which could be built on if the right opportunity arose. In 1991, perhaps cognizant of this common ground, the management of Norsk Hydro ASA, acquired a three-plant ammonia production facility located at Savonetta in central Trinidad. Today, two of the sites are run by Trinidad Nitrogen Co (Tringen), a successful joint venture between Yara and the government of Trinidad and Tobago, while the third is owned by Yara International, which operates the plant independently. Combined, all three of the sites employee 260 people – almost all of which are locals – and have annual production of 1.3 million metric tonnes, 99% of which is exported, making Trinidad and Tobago the world’s leading exporter of ammonia.


YARA TRINIDAD

‘People don’t care how much you know until they know how much

you care’

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As part of its commitment to sustainability, Yara International developed a Sustainability Value Matrix, which it applies across all of its markets, including Trinidad and Tobago. The value matrix analyses what topics the company considers to be material to the company’s value creation and what topics are significant to society. The design of the matrix shows the company’s commitment to protect natural resources, food and the environment, as well as taking into account the UN’s Sustainable Development Goals (SDGs). For example, in addition to 94

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It places a particular focus on continuous improvement in four areas. These are responsible growth, environment, health and safety and its workforce. Almost all of Yara’s energy is consumed in ammonia production, which makes the Trinidad and Tobago sites into focus for anyone looking to sustainability. Yara International consumes 4.9% less than the industry average for ammonia production and its energy consumption in the area has been falling year-on-year since 2013.


YARA TRINIDAD

36-52 Chan Ramlal Street, Chaguanas, Trinidad W.I. (500449) Website: www.drampersad.com Phone No.: 868-671-7267 Fax No.: 868-665-3593 (E-mail: engineering@drampersad.com)

BS EN ISO 9001:2008

General Services/Products include:          

Servicing of General Rotating Equipment. Machine Shop / Water Jet / HVOF Coatings. Valve Refurbishment. Fabrication (Structural/Piping). Field Services/Turnarounds. Construction/Contract Services. WTP / WWTP Upgrades / Refurbishments Leak Detection. Distributors for numerous international pumps, blowers & valve manufacturers. Cathodic Protection / Corrosion Management.

In terms of community and social participation, Yara Trinidad also maintains a strong presence on the islands. It is one of the largest sponsors of school and college track and field events in Trinidad and Tobago, a regular sponsor of the AMCHAM Health, Environment, Safety and Security Conference which is held annually, and regularly participates in the West Indies World of Work Seminar.

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THE SUSTAINABLE BUSINESS REVIEW world’s largest mining firms, providing testament to the quality of its output. It was responsible for the upgrade of Yara Trinidad’s control system as well as the engineering, selection and supply of control valves for the revamp of Yara Triniad’s HAT Plant.

Caribbean Collaboration Yara International’s commitment to Trinidad and Tobago is reflected in the diversity of local partners it employs to support it in its ongoing operations. Primary among these local partners is a firm called Process Management Limited, a local provider of process automation and instrumentation. Its client list includes some of the 96

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In fact, what emerges from looking through Yara Trinidad’s local partner list is a veritable ecosystem of suppliers for a firm of its kind. Other local partners include Amsha Engineering Limited, who continue to aid Yara Trinidad with several complex engineering solutions, ESAU Oilfield Supplies who provide complementary supplies from the oil and gas industry, and Ameritrin, who assist Yara in its logistical operations. On the financial side, Yara Trinidad works with National Enterprises Limited (NEL) who assist with corporate governance issues that come with having state-owned assets under management.


YARA TRINIDAD

Out of the ashes Trinidad and Tobago’s considerable ammonia assets have made it one of the wealthiest nations in the Caribbean. In its 55 years of independence, it has made incredible strides to have a GDP per capita which is higher than that of even some European nations. It ammonia trade has played, and will continue to play, a central role in that economic development. While ammonia prices have fallen over the past 5 years from their historical highs. The government has also made the development of agriculture one of its primary focuses over its five year term to 2020. With its ammonia resources being a primary input for fertilizer, Yara Trinidad can play an integral role in the development of this sector. There may come a time in the not so distant future where Trinidad and Tobago begins to use more of its ammonia resources at home, than it exports. In any case, Yara Trinidad will be there working alongside the country all of the way - an integral part of the country’s development, in whatever form that development takes.

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NHT:

A ro Jam

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NHT

oof right over maicans heads

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T

he National Housing Trust (NHT) of Jamaica marks 40 years in 2016. Since being signed into existence by then Prime Minister, Michael Manley in late 1975 the housing trust has more than lived up to its mandate to be

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“primarily responsive to the housing needs of low and middle-income earners.� In those 40 years, nearly 200,000 separate housing benefits have been administered by the trust to the citizens of Jamaica.


NHT The NHT’s lends money at low interest rates to contributors who wish to buy, build or repair/improve their homes or who wish to buy or build on lots. It also provides low cost financing to private developers. As such, its ongoing success is pivotal

to the continuing growth of Jamaica as a nation. Its stated vision is to be a role model among the world’s leading finance institutions, delivering affordable housing solutions in a service culture, with professional staff serving customers with integrity and excellence. The NHT has introduced a number of initiatives over its lifetime which have greatly contributed to the development of the island’s housing. First and foremost,it has been consistent in being the island’s primary provider of the lowest interest rates for land purchases or construction to facilitate home ownership. The programmes it has implemented include the Home Grant, Contributions Refund Towards Deposit (commonly referred to as “CRTD”) and First Step Homes. A Home Grant is an amount of up to one million and two hundred thousand dollars ($1,200,000.00) awarded to individuals who earn no more than ten thousand dollars and ninetynine cents ($10,000.99) weekly; the CRTD facility may be utilised by any contributor of the NHT and allows the individual to access contributions not yet due to be refunded, as an additional loan, to be used as a Quarter 1 2017 - The Sustainable Business Review

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NHT deposit towards the purchase of a housing solution; the First Step Homes offer a more inexpensive alternative to purchasing a housing solution. Without the hassle of constructing their own house, Jamaicas can get a complete unit for less than two million dollars ($2,000,000), thus ensuring that more contributors have a place to call their own. In the 2014/2015 year, the NHT’s assets grew by 7.1% over the previous year, reaching $221 billion – up from just over $206 billion in 2014/2015. The growth was mainly constituted by loans receivable, which account for over 80% of all the trust’s assets. Over the course of the year, the NHT spent $20.8 billion on mortgage and construction activities and reviewed 2,342 different housing and construction solutions. Over the course of the next two years, it intends to roll out a plan to build 9,000 houses on the island.

Community

Engagement The NHT is an organization which recognizes that its primary function is to serve the community. As well as fulfilling its mandate of working tirelessly to provide housing and shelter for Jamaicans, its initiatives always have the wider community at their core. For example, what the statistics don’t always show is how many of the construction works funded by the organization are in fact, rejuvenation projects in Quarter 1 2017 - The Sustainable Business Review

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THE SUSTAINABLE BUSINESS REVIEW lower income communities. In recent years, these works have included projects in the neighborhoods of Majesty Gardens, Frog City and White Wing. The word ‘development’ means more to NHT than just construction, however: Its Social Development arm

has employed several strategies, summarily: community governance, behavior change, environmental management, opportunities for 104

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income generation, arrears and special investigations, community development, and community competition. Community governance initiatives were introduced to over 1,000 individuals in newly developed communities where residents participated in preoccupancy/strata training. Strategic partnerships were also brokered between communities and entities such as Universal Access Services and the Digicel Foundation, which provided computers and internet access. Under the banner of behavior change, four separate “Music for Social Transformation” proects received continued support from the NHT. The projects aim is to provide music and life skills training for youths around Jamaica. In addition, the NHT runs children’s summer camps around the island, which focus on culture and sports. The NHT also runs an island-wide


NHT

iniative known as the Best Schemes Competition. This competition seeks to encourage entrepreneurship among the NHT’s programmes participants. Every year, several million dollars are allocated to small businesses which make positive social impact across Jamaica. The NHT has several partners in this initiative: Development Options, Heart Trust NTA, the Jamaica Business Development Company, Jamaica National Foundation, UWI School of Social Entrepreurship and the Development Bank of Jamaica.

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NHT The NHT’s programmes don’t stop there, however. It is particularly proud of its collaboration with the Youth Upliftement Through Employment (Y.U.T.E.) programme. This initiative seeks to empower and ecourage young people (18-29 years), living in inner city communities by providing skills training, mentorship and certification in the field of construction. Over the years, several hundred partipants have been trained in various construction disciplines, all coming from under-privileged areas in Jamaica.

Continuing growth,

growing partipation Even in its position as the major player in construction development in Jamaica, the NHT realizes it isn’t impervious to changes going on in the world. For example, it recognizes that it needs to utilize the latest advances in technology to

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THE JOB IS TOUGH.

WE JUST MAKE IT LOOK EASY.

By designing all aspects of the machine, from electronics to drive train and hydraulics from beginning to end, all componentry meshes flawlessly. This is not the easiest way, but it’s the best way. It guarantees you get a machine that has built in quality and reliability. This is why Komatsu gets the toughest jobs, and makes them look easy.

Member of the Stewart’s Automotive Group

22 Bell Road, Kingston 11, Jamaica, W.I. Tel: (876) 937.2180-3 Fax: (876) 923.4318

SALES + SERVICE + PARTS FOR THE WORLD’S LEADING INDUSTRIAL & COMMERCIAL BRANDS!

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NHT develop to more modern and ecofriendly homes that its contributors can afford. The houses that it builds today are considerably more sustainable than those that it built 40 years ago and this is a trajectory of sustainability that it intends to continue on. The NHT also reviews its financial product mix on an ongoing basis, constantly looking to improve on what it can deliver to its participants. Its commitment to innovation is also

reflected in its increasing spend on technology and IT infrastructure: a growing number of Jamaicans now make almost all their interactions with the NHT through its online portal, for example. The NHT has grown in 40 years from being a concept to a driver of the Jamaican economy. It’s not difficult to see why it says of itself that it is “the product of a vision articulated and passionately owned.� Quarter 1 2017 - The Sustainable Business Review

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BAN

Blueprint for ethica

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BANRO

NRO

al mining in the DRC

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W

ith three awards for social performance under its belt, Banro has cemented its reputation as a leader in ethical mining practices in the Democratic Republic of Congo (DRC). The Banro Corporation is a Canadian gold company which is listed on the Toronto Stock Exchange and the NYSE MKT exchange. The Company has two gold mines and two gold exploration projects in the DRC, which are wholly owned. Banro is the largest gold mining company in the DRC and they control the largest gold exploration land package in the DRC along the 210 km north east to south west trending Twangiza-Namoya gold belt. In 2011, they opened the first commercial gold mining company in the DRC in 50 years.

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CATEGORY

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THE SUSTAINABLE BUSINESS REVIEW The Company takes their responsibility of working with local communities and their leaders very seriously and have contributed to the social and economic growth of the region. President and CEO John Clarke said it was important to ensure that the benefits of mining are shared amongst indigenous communities in the DRC. Banro's mission is to unlock shareholder value by increasing and developing the Company's significant gold assets in a socially and environmentally responsible manner. This will be achieved through: •Building supportive relationships with local companies •Creating capacity-building jobs for Congolese citizens •Adopting high standards environmental management

of

•Nurturing local supply chains •Building local infrastructure •Forging of partnerships with local and international NGO’s.

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BANRO

Twangiza-Namoya GOLD BELT The DRC is reported to have the 10th highest gold reserves in the world. According to KPMG, the mining sector is expected to remain the main foreign direct investment (FDI) draw card over the short to medium term in the DRC. Banro has mining licenses which cover a total of 2,613 square kilometres. The Twangiza-Namoya gold belt is 210 km long and is situated in the Kivu province southwest of Bukavu City. Twangiza is located at the northern tip of the gold belt and is Banro’s first producing mine, commencing commercial production in September 2012. It is an open pit, oxide operation which has a Proven &Probable Mineral Reserve of 4.69 million ounces of gold. The Inferred Mineral Resource is 0.37 million ounces of gold. In 2015, Twangiza produced 135,500 ounces of gold, increasing production by 38% from 2014. Namoya is Banro’s second gold mine which is located at the southern end of the gold belt. Commercial production at Namoya commenced in January 2016. It is also an open pit,

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THE SUSTAINABLE BUSINESS REVIEW oxide operation which has a Proven &Probable Mineral Reserve of 1.36 million ounces of gold. The Measured and Indicated Mineral Resource is 1.62 million ounces and the Inferred Mineral Resource is 0.26 million ounces of gold. The total production for both mines is expected to be between 210 00 – 230 000 ounces of gold annually.

Banro has two other key exploration projects located on the gold belt: • Exploration is underway at Lugushwa and preliminary economic assessment will be completed in 2016. Lugushwa has an Indicated Mineral Resource of 0.73 million ounces of gold and an Inferred Mineral Resource of 3.53 million ounces of gold. Banro is considering the prospects of building a third mine at Lugushwa and is accelerating exploration at the site. • Exploration has also commenced at Kamituga, which has an inferred mineral reserve of 0.92 million ounces of gold. A feasibility study is likely to commence within two to three years.

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Investing IN PEOPLE The DRC has improved its Human Development Index (HDI) from the lowest rank in 2013 to 176 out of 188 countries in 2015. The HDI represents a summary measurement of the average performance of the country


BANRO in key areas of human development. Banro has contributed significantly to increasing the knowledge, skills and the standard of living for their staff and surrounding communities. It is one of the largest private sector employers in the eastern DRC, employing 2,700 Congolese people either directly or indirectly. The Company’s training and development goal is to support

employees to attain their maximum potential, while linking personal development to current and long-term business goals. The target is to have 95% of all management, professional, skilled and administrative jobs in Banro’s operations occupied by Congolese nationals. They have come very close to achieving this target which is currently over 91%. In 2015 Banro won Best Employer Award for job creation and the quality of wages and benefits paid to staff.

Sustainable COMMUNITIES The Banro Foundation is a registered DRC charity which was founded in 2005 with the objective to increase the long-term economic and social development in the communities near its operations. The Foundation invests mainly in education, health care, social infrastructure development and sustainable agriculture. To date the Foundation has completed 70 projects valued at $5.5million. Banro has formal agreements in place with communities in the areas in which the mines are situated. The

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agreements are reached after community consultation and set out the projects that will be implemented by Banro to achieve the community aspirations of improved education, health, infrastructure, sustainable economic development and employment. Clarke highlighted Banro’s commitment to hiring people from the local communities where their mining operations were located. He said that currently 35% of their Congolese staff compliment comes from local communities and that there are plans to increase local employment to 50%. Some of the skills development 118

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projects that Banro have i

• 13 Top candidates in the capital Kindu were professional training progr

• 19 candidates from Twangiza mine completed training program.

• 31 candidates comp Apprenticeship Program training for unemployed


implemented are:

from the local high school e recruited into a two year ram at the mine.

m the community near the a six- month apprenticeship

pleted the Banro Community which provides industry youth. Once completed,

BANRO

the graduates are given preference when there are vacancies at Banro.

Building local SUPPLY CHAINS Both Banro and the Banro Foundation have prioritised the development of local supply chains to enhance economic development and sustainability. The Twangiza mine supports three agro-pastoral cooperatives, two road building cooperatives and Quarter 1 2017 - The Sustainable Business Review

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THE SUSTAINABLE BUSINESS REVIEW one carpentry workshop. The Cinjira Agricultural Cooperative which has 106 members partners with Banro’s caterers, ATS, to supply potatoes to the mine and the Lubanda Agricultural Cooperative which operates three farms, produces and supplies vegetables. They employ 27 community members. The Luhwindja’s Breeders Cooperative acts as a channel for local cattle and goat farmers who wish to sell their products to the Twangiza mine through ATS. The cooperative provides 27 permanent jobs and earned revenue in the region of $200,000 in 2015. Banro provided $87 000 in operating funds to the ASSODEC Cooperative which focuses on road maintenance projects and $240 000 in operating funds and equipment to UTRALU cooperative which works on road construction projects. These two cooperatives provide employment to over 200 local people.

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Safety FIRST According to a KPMG study, mining in the DRC is still fraught with risk due too poor working conditions of mine workers, exposure to landslide hazards especially in the monsoon season, and exposure to heavy metals through dust inhalation and water contamination. Banro embraces a robust and comprehensive risk management

approach, recognising that risk is an unavoidable consequence of mining operations. The Company’s goal is to create a work environment that is free of uncontrolled hazards and safe for its employees and contractors. In 2015 the Twangiza mine operated for 5.3 million hours with no lost time injuries and Namoya reported 3.6 million hours with 1 loss time injury.


BANRO

LEADERSHIP AND INNOVATION SINCE 1997

© SGS Group Management SA – 2016 – All rights reserved – SGS is a registered trademark of SGS Group Management SA

SGS Tanzania Superintendence Co. Ltd is a member of SGS group with headquartered in Dar es Salaam. It has been offering services to Exporters, Importers, Manufacturers, Agents, Traders and Government Institutions for more than 50 years. In 1997, SGS started an ISO/IEC 17025 accredited geochemical laboratory in Mwanza, which is part of the SGS global laboratory network using the same global testing methods, analytical codes, and sampling preparation techniques to ensure uniform excellence for its customers. SGS support its clients’ exploration and mining efforts as a strategic partner and an independent analytical advisor. MINERALS SERVICES

We provide inspection and supervision services in weight and grade certification, sampling, sample preparation, chemical and quality analysis on behalf of mining, trading houses and process plants.

Geochemical Laboratory Services (ISO 17025)

Situated in Mwanza, the geochemical laboratory aims to assist clients to select analytical methodology that most appropriately fit their needs. The laboratory operations provide sample preparation, Fire assay Au, Acid digests Au, Base metals by ICP and AAS. •

On-Site Laboratories

SGS is able to supply laboratory equipment, set up, commission and train or operate on mine site laboratories.

Minerals and Trade Services

ENVIRONMENTAL SERVICES Coordinates and undertakes environmental projects, from single discipline to full team national and/ or international consultants. We undertake ecological baseline studies, environmental impact assessments, Environmental audits, land reclamation planning and implementation. •

Air, Water, Soil, Leaf Testing

Laboratory Services

SGS TIME MINING SERVICES Integrated services from concept to commissioning. Our experts provide accurate resource estimation and classification, complete ore body modeling and mine planning based on collected data, process design and engineering, procurement and construction supervision, plant commissioning, mine operation and management, plant audits and optimization including plant upgrades.

CONTACT We can be contacted at the following address: Plot No. 127, Mafinga Street, Kingsway Kinondoni Rd Phone: +255 22 234 58 00 E-mail: sgs.tanzania@sgs.com

SGS IS THE WORLD’S LEADING INSPECTION, VERIFICATION, TESTING AND CERTIFICATION COMPANY

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Promoting conflict-free ARTISANAL GOLD MINING Although forbidden by Congolese law, child labour is common in artisanal gold mining. A World Vision study shows that about 40% of artisanal miners are children. Children as young as eight years old are being forced to mine. Artisanal miners continue to work with mercury which is illegal. In addition they are exposed to strenuous working conditions and extreme hazards like digging collapses etc.

Globally there is a concern that minerals exported from the DRC originates at artisanal sites which are illegally operated and where workers are subjected to human rights atrocities by armed groups. Banro supports efforts to end the illegal trade in minerals 122

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BANRO and complies with internationally accepted standards and guidelines to certify that the gold is conflict free. The company also provides assurance that the gold exported by their mines to the Rand Refinery in South Africa, was produced in compliance with the Conflict Free Gold Standard as established by the World Gold Council.

Future PLANS The Company holds 14 exploration permits which cover 2,638 square kilometres and which are located on highly prospective ground between its Twangiza and Lugushwa projects. In addition, they have several pending applications for additional exploration permits. Banro have indicated that they will maintain their portfolio of high rate of return projects by increasing production or lowering costs including potential underground mine expansions or low capital cost hydro power projects. The costs associated with diesel power generation will be reduced by two hydro power projects which are planned in the vicinity of the mines, and which are expected to deliver 10MW hydro power. This will reduce energy costs significantly and bodes well for Banro’s growth plans in the DRC. Quarter 1 2017 - The Sustainable Business Review

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